Dt Midstream, Inc. · NYSE:DTM
Dt Midstream — J.P. Morgan Energy, Power & Renewables Conference 2022
29 slides from Dt Midstream's conference presentation, Jun 23, 2022
Slide 1: J.P. Morgan Energy, Power & Renewables Conference
J.P. MORGAN ENERGY, POWER & RENEWABLES CONFERENCE JUNE 23, 2022
Slide 2: Safe Harbor Statement
New slide Safe Harbor Statement This presentation contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. These forward-looking statements are intended to provide management’s current expectati
Slide 3: DTM provides a clear, disciplined and balanced investment thesis
DTM provides a clear, disciplined and balanced investment thesis Integrated assets in world class dry Predictable, robust contracted gas basins serving key markets cash flows Haynesville / Appalachia dry gas focus Strong cash flow Integrated asset footprint Long-term take-or-pay contracts Well posit
Slide 4: Integrated assets in world class basins
Integrated assets in world class basins
Slide 5: Favorable fundamentals and growth opportunities in both basins that we serve
Favorable fundamentals and growth opportunities in both basins that we serve Haynesville • 300 MMcf/d LEAP pipeline phase 1 expansion in-flight; can be further expanded to 2.0 Bcf/d with compression • Gathering and treating expansions serve growing production • Growth opportunities driven by strong
Slide 6: Haynesville rig count has surged above pre-pandemic levels; production expected to grow
Haynesville rig count has surged above pre-pandemic levels; production is expected to experience strong growth through 2030 Haynesville gas rig count Haynesville production (Bcf/d) +37 rigs 70 since June 2020 low 20 65 18 +7 Bcf/d 60 16 55 14 50 45 12 40 10 35 8 30 6 25 20 4 2017 2018 2019 2020 2021
Slide 7: DTM has significant exposure to growing LNG export demand
DTM has significant exposure to growing LNG export demand US LNG exports (Bcf/d) 24 Cove Point LNG +13 Bcf/d 20 16 ~8 Bcf/d 12 of Louisiana Gulf Coast area LNG export growth 8 through 20301 4 LNG facilities Operational 0 Gulf Coast Under development 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 8: Haynesville system is well-positioned to serve growing supply
Haynesville system is well-positioned to serve growing supply Phase 1 Haynesville / LA Gulf Coast DTM pipeline assets LNG facilities • Expansion is on track and on budget ~7 Bcf/d DTM treating plants Operational of supply growth – Critical long-lead equipment has been ordered through 20302 Expansion
Slide 9: Appalachia is expected to account for greater than 1/3 of US gas supply through 2030
Appalachia is expected to account for greater than 1/3 of US gas supply through 2030 Appalachia production (Bcf/d) Marcellus Utica Largest US supply basin with durable production 40 • Appalachia is expected to maintain its ~35% share of US supply 36 Emerging takeaway capacity constraints favor 32 pi
Slide 10: Predictable cash flows supported by strong balance sheet
Predictable cash flows supported by strong balance sheet
Slide 11: Consistent track record of successful organic development and acquisitions
Consistent track record of successful organic development and acquisitions Historical adjusted EBITDA1 growth $768 (millions) $82 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Asset growth timeline ✓ Washington 10 expansion ✓ Bluestone lateral and gathering system in- ✓ NEXUS
Slide 12: Growing and durable business that is positioned for today and the future
Growing and durable business that is positioned for today and the future Well balanced Portfolio durability Strong growth Well positioned for business mix platforms energy transition 100% natural gas focused Irreplaceable Strategically ~90% positioned in the core energy infrastructure 53% 2021 Adjus
Slide 13: Strong confidence in achieving 2022 guidance and 2023 early outlook
Strong confidence in achieving 2022 guidance and 2023 early outlook Adjusted EBITDA1 (millions) 5% - 7% 850 CAGR $810 - $850 New projects and existing business will deliver 800 $770 - $810 incremental growth 750 $710 - $750 • Investing in growth opportunities in both basins and both segments 700 • E
Slide 14: Maximizing total shareholder return via our strong cash flow generation
Maximizing total shareholder return via our strong cash flow generation Distributable cash flow1 (millions) $575 - $625 Value creation ✓ Highly accretive growth projects – Substantial set of organic projects at favorable build multiples ✓ Return capital to shareholders – Increasing dividend with gro
Slide 15: Major growth projects are on track
Major growth projects are on track Contracted growth investments Project In-service date(s) Stonewall expansion Q2 2022 Pipeline Michigan Gathering to intrastate pipeline conversion Q4 2022 Haynesville LEAP pipeline expansion – Phase 1 Q4 2023 Appalachia Gathering System expansion Q3 2022 Gathering
Slide 16: Our well positioned assets provide incremental organic growth opportunities
Our well positioned assets provide incremental organic growth opportunities Platform Region 2022/2023 commercial focus • In active discussions with multiple customers for a LEAP Lateral Haynesville phase 2 expansion Pipeline • Re-contracting opportunities NEXUS Pipeline Appalachia • Open season disc
Slide 17: Growth is supported by highly stable cash flows backed by long-term fee-based contracts
Growth is supported by highly stable cash flows backed by long-term fee-based contracts with strong customers Underpinned by long-term, fee-based contracts • ~90% of total contribution1 is from minimum volume 2021 revenue contribution composition commitments (MVC) / demand charges (take-or-pay) and
Slide 18: Financial strength is supported by strong balance sheet with 8 year debt maturity
Financial strength is supported by strong balance sheet with a weighted average debt maturity of 8 years Debt maturity profile (billions) Converted variable rate to fixed rate and extended Converted 60% of 7-year variable rate term loan to 10-year maturity by 4 years fixed rate senior notes $1.1 • $
Slide 19: Disciplined financial approach
Disciplined financial approach Self-funded investment program Strong organic growth $1.2 - $1.7 billion 7% - 9% growth • Growth investment range from 2021 - • 2021 adjusted EBITDA1 original 2025 is driven by organic opportunities within existing platforms guidance to 2022 adjusted EBITDA guidance Va
Slide 20: Mature environmental, social and governance leadership
Mature environmental, social and governance leadership
Slide 21: Leading the industry with a mature environmental, social and governance program
Leading the industry with a mature environmental, social and governance program Environmental Social Governance • Targeting net zero greenhouse gas • Established $4 million foundation for • Strong C-Corp governance with separate emissions by 2050 and a 30% reduction community investment Chairman and
Slide 22: Committed to operating in an ethical, environmentally sensitive, and socially responsible manner
Committed to operating in an ethical, environmentally sensitive, and socially responsible manner Achieving top-decile methane intensity performance Gathering segment methane Pipeline segment methane intensity intensity 2020 to 2021 2020 to 2021 35% 25% Fostering a strong safety culture Employee tota
Slide 23: Executing on our plan to be net zero by 2050
Executing on our plan to be net zero by 2050 Annual GHG emissions (million metric tons / year) ~30% Currently executing – Carbon capture and sequestration – Electric compression – Methane monitoring and reduction technologies – Renewable natural gas connections Opportunities being evaluated – Hydrog
Slide 24: Committed to strong governance practices
Committed to strong governance practices DT Midstream Board Members Best-in-class governance practices • Structured as C-Corp with separate CEO and Executive Chairman • Long-term incentive plans tied to total shareholder return targets Robert Skaggs, Jr. Wright Lassiter, III Executive Chairman Lead
Slide 25: Clean assets, clean balance sheet, clean story
Clean assets, clean balance sheet, clean story Integrated assets in premier dry gas basins serving key markets Stable balance sheet with low leverage Predictable, robust contracted cash flows Mature environmental, social and governance leadership 25
Slide 26: Appendix
Appendix _ oe Ew’ & Midstream
Slide 27: Adjusted EBITDA and distributable cash flow (DCF) are non-GAAP measures
New slide Adjusted EBITDA and distributable cash flow (DCF) are non-GAAP measures Adjusted EBITDA is defined as GAAP net income attributable to DT Midstream before expenses for interest, taxes, depreciation and amortization, and loss on extinguishment of debt, further adjusted to include our proport
Slide 28: Operating earnings is a non-GAAP measure
New slide Operating earnings is a non-GAAP measure Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DT Midstream management believes that operating earnings provide a more meaningful representation
Slide 29: Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA
New slide Reconciliation of net income attributable to DT Midstream to Adjusted EBITDA (millions) 2008 2021 1. Includes share of our equity method investees’ earnings before taxes, depreciation and amortization, which we refer to as “EBTDA.” A reconciliation Net income attributable to DT Midstream $
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